Business leaders across the United Kingdom are cutting investment plans as increasing prices and brexit trading problems, and political uncertainty have left the business leaders pessimistic about the economic outlook in the country.
According to the latest poll of business heads by the Institute of Directors, many companies are now planning to cut investment instead of increasing it. That is the weakest reading of investments since October 2020, as nervous companies rein in spending.
The investment intentions of UK businesses have been decreasing steadily since the beginning of 2022, as input costs have increased, and the economy has slowed, undermining efforts to grow productivity.
Business leaders are also less upbeat regarding their own prospects, with more than 50 percent saying economic conditions, along in the United Kingdom have a negative impact on their companies, with rising energy costs and shortages of skills.
Kitty Ussher, chief economist at the Institute of Directors, warned that perceived risks in the country continued to drive the behaviour of business leaders in July 2022, with concerns about inflation, their relationship with the European Union and political instability, are causing intentions increasingly to be put on hold.
Kitty Ussher is also concerned by the weakening confidence of business leaders in their own prospects, and he said that this one to watch in the upcoming months.